Budget FAQs - Budget Development

SFUSD needs to cut about $102 million from the budget for the 2026-27 school year. To fix this gap and stay stable in the future, we are following a multi-year plan. This plan focuses on careful spending and using resources where students need them most. The goal is to protect important services for students while bringing the budget back into balance.

Last year, we made some hard choices that helped improve our finances, including cutting costs in the Central Office. We are no longer spending more money than we bring in mid-year, which is a good sign. But we are only in the second year of our financial plan, and we still have work to do to fully improve our budget.

Our budget shows what we care about. SFUSD has clear goals to improve reading, math, and college and career readiness. So we are not just deciding what to cut—we are also making sure schools get what they need to help students learn and succeed.

This fall, we held five town hall meetings and joined 11 parent advisory groups to talk with our community, share updates, and hear their ideas around budget planning. These talks helped us plan our next steps.

As we move into winter and spring, there will be more chances for students, families, staff, and community members to share their input. This is especially important as schools get their budgets, work with their School Site Councils, and start making decisions. These conversations help guide our work.

SFUSD will monitor how our budget decisions affect students by tracking important student results and school data. We will keep sharing this information so families can understand  what is changing and how students are doing.

We are spending money to help students learn more, and we give regular updates at Board of Education meetings and on our website. These updates include:

• Reading, math, and English for PK-8 students, using strong lessons and regular tests.
• College and career readiness, including early warning signs and students’ progress toward graduation and future plans.
• Teacher support, including training, coaching, and time for teachers to work together.

By showing how we spend money and sharing updates throughout the year, we want families to understand what is working and where we need to make improvements.

Bond money is restricted funding. This means it can only be used for eligible capital expenses, as defined by the bond measures passed by San Francisco voters. It cannot be used for the district’s everyday operating costs, including regular building maintenance. SFUSD gets about $6 million each year from the operating budget to maintain and fix buildings. But the Bond Program provides much more—over $100 million each year, on average—to upgrade and improve school buildings.

As we plan the 2026-27 budget, we will make sure our Vision, Values, Goals, and Guardrails match the funding we get from the state, which is our main source of money.

SFUSD will use financial information and student results to guide decisions about where any budget cuts might come from—whether at the central office, schools, or specific programs. We will look at:

• How money is spent and if it directly helps students learn.
• Student progress, like reading, math, and graduation rates.
• Program results, including whether services are helping the students they are meant to support.
• Operations, like staff levels, program use, and cost-effectiveness.

We will share all of this information with families through Board of Education meetings, our website, and the Local Control Accountability Plan (LCAP). The LCAP explains our district goals and shows how we use money to support students and improve results.

We are always working on ways to keep and support our staff in SFUSD. This includes offering competitive pay and a variety of benefits. By working with staff, labor partners, and the community, we are finding long-term solutions to make sure our students get a high-quality education and our staff get the support they need.

SFUSD is still hiring teachers for a few open Transitional Kindergarten (TK) classes. These jobs are hard to fill because there simply aren’t enough certified TK teachers in the state. In the meantime, we are ensuring that all classrooms have qualified substitutes or long-term staff, and instructional coaches are helping so students keep learning without interruptions.

State rules say TK teachers must have a teaching credential and extra training in early childhood education. SFUSD is focused on supporting schools, hiring teachers efficiently, and making sure all TK students have a high-quality learning experience.

SFUSD has many ways to support our teachers and staff, like paid training, coaching, and cash bonuses. We want to keep strong educators who can help students succeed.

We know living in the Bay Area is expensive, especially for new teachers. When teachers can live near their schools, it helps them stay, connect with families, and be part of the community.

To help, in fall 2025, SFUSD opened Shirley Chisholm Village, a 135-unit affordable housing project for teachers and staff. We are also exploring other housing options for educators in San Francisco, as directed by the Board of Education.

SFUSD switched to Frontline and Red Rover to replace old systems and make the district run more smoothly. We are committed to being clear and open while this change happens.

We know these systems are important, and we want to make sure employees are supported. Here’s how we help if there are problems with pay:

• If a staff member is underpaid by $50 or more, SFUSD can issue a check to fix it within 48 hours.
• Staff can get help by submitting a ticket or calling the Call Center.
• We share updates on our websites about progress, known issues, and solutions.

Big changes like this can have some challenges at first, especially after using old systems for many years. SFUSD is ready to help staff through this transition.

SFUSD will keep using a School Staffing Model to decide how many staff each school gets. This is based on enrollment projections, best practices, and community input. These numbers help school leaders make their plans for the next year.

Some schools may get extra money for special programs depending on eligibility and unique programming at the school.

Staffing plans will be shared with schools in January, and families will have a chance to give feedback. SFUSD is committed to keeping important services and giving students a high-quality education.

SFUSD is using several strategies to support students who need the most help, even while making budget cuts:

• Using Funds for Students Who Need Them Most – Extra money for English learners, low-income students, and other high-need groups must be used to support those students, following the district’s Local Control and Accountability Plan (LCAP).
• Staffing Based on Student Needs – Schools get teachers and support staff based on how many students need extra help, including English learners, low-income students, and students receiving special education services.
• Improving Special Education – SFUSD commissioned a review of its special education services last year and is implementing recommended reforms from that review: strengthening service continuity, improving systems, increasing accountability, and prioritizing hiring to serve students with disabilities.
• Supporting Underserved Schools – When planning staffing and school space, SFUSD works to reduce negative effects on schools in historically under-resourced communities.

As we plan school staffing, we will decide how many staff each school gets based on enrollment projections, best practices, and input from the community. These numbers are a starting point to help school leaders make their plans.

SFUSD will prioritize protecting essential services for high-need students by maintaining required special education supports, directing state and federal supplemental funds to schools that serve English learners and low-income students, and using the School Staffing Model to allocate staff based on student needs.

Our goal is to maintain positions where they are most needed, even as overall budgets tighten. SFUSD is committed to supporting the whole child by ensuring students have access to safe, healthy, and nurturing learning environments. Given the diversity of our students there is no one size fits all for what this looks like to a school community. Depending on students and their needs we have historically provided counseling and mental health services, wellness centers, partnered with community agencies for additional supports, and promoted practices that foster social-emotional development, and we will continue working as a community to ensure the appropriate levels of supports for our students depending on what they need.

Additionally, targeted state and federal funds will continue to support schools serving higher-need populations so that essential services remain accessible. We will also continue to work closely with our community partners that provide wellness supports and services to students.

SFUSD will keep checking on students’ wellness, safety, and sense of belonging. We do this through surveys, looking at school data, and talking with teachers, families, and community partners. This helps us notice problems early and give help where it is needed most. Even with smaller budgets, SFUSD aims to protect core wellness and safety supports for students.

SFUSD is taking several steps to make sure students have high-quality, accurate, and meaningful curriculum materials in every subject.

Here’s what we’re doing:

• Reviewing and updating materials so they match state standards and reflect research-based resources.
• Including teachers and subject experts in selecting and vetting materials to make sure they work well for students.
• Providing training and support to schools so teachers can use the curriculum effectively through professional development.
• Checking for consistency and quality across the district so all students have access to engaging, rigorous and accurate materials, no matter their school or program.

These steps help ensure every student receives learning materials that are reliable, relevant, and truly support their success.

Staffing classrooms in SFUSD is guided by collective bargaining agreements, which outline clear rules and processes for how educators are hired, assigned, and supported. These agreements ensure that staffing decisions are fair, transparent, and consistent across the district, while also protecting educators’ rights and maintaining high standards for student learning. 

San Francisco schools are regularly inspected and repaired. Any serious safety issues are addressed right away. Our goal is to give all students comfortable, modern, and high-quality learning spaces. SFUSD’s facilities department has about $6 million each year from the general fund to take care of building maintenance and improvements.

No, the decision to close a school is not made solely based on the budget. The Superintendent and the Board of Education are beginning conversations to explore changes to SFUSD’s school portfolio with the goal of improving student experiences and outcomes districtwide. There would be a lot of factors to consider in a school reorganization process. SFUSD is committed to transparency and inclusive community engagement as part of any process to analyze the district’s school portfolio. 

SFUSD has to send its approved budget to the state by July 1, 2026.

This fall, we held multiple town halls and joined 11 parent advisory groups to talk with the community. There will be more chances to give ideas in the winter and spring, when schools get their budgets.

Because we are still spending more money than we're bringing in, we expect to cut our budget by another $102 million for the 2026-27 school year. We are handling this carefully and transparently, making sure we balance immediate needs with long-term stability.

One reason is that costs are going up, especially for staff and benefits, which make up 85% of our budget. The district also has long-term budget challenges made worse by having fewer students and temporary COVID relief funds that are now gone. These challenges happen in many school districts, not just SFUSD.

While SFUSD is still under state oversight, we have made important progress to improve our finances. Our goal is to reach positive certification by July 1, 2026. To do this, we must show that we can spend within our budget.

Our budget shows what we care about most. SFUSD has set goals, based on data, for reading and math, as well as for more students to be ready for college and careers. Therefore, we're not just talking about what to cut—we’re deciding how to give our schools what they need to help students succeed and meet our goals.

Our goal is to lower costs by not replacing some staff who leave, such as by retiring, and by making changes to how we operate. If layoffs are needed, we will follow all state rules and give notices in the spring. We know this uncertainty can be stressful for employees, and we promise to handle the process with care, transparency and honesty.

SFUSD is working to come out of state oversight, with a goal of earning a positive certification by July 1, 2026. Balancing the budget for next year is a core step in this process The district has made big budget changes, including $114 million in cuts for the 2025-26 school year and a plan to keep finances stable.

California’s Local Control Funding Formula (LCFF), enacted in 2013–14, gives school districts serving high-needs students more funds in the form of supplemental and concentration grants, based on the number and percentages of high-needs students they serve. As part of the LCFF, school districts are required to adopt Local Control and Accountability Plans (LCAPs), which are plans to show how districts will spend the supplemental funds to support their high-needs students. Each year, parents, students, labor partners, and community members are given the opportunity to provide feedback and help shape SFUSD’s LCAP.

SFUSD determines the starting point for each school’s budget based on an estimate of each school’s enrollment for the fall. This estimate is the primary way the district determines the amount of staff required at each school. The district also allocates funds based on specific programs, focal student populations (for instance, students from low socio-economic households, multilingual learners, and special education, as well as foster and homeless youth), and expenses for materials, supplies, and activities.

Once these base allocations have been made, school principals, School Site Council members, parent advisory committee representatives, community partners, and parents/guardians of focal student populations meet during the annual School Planning Summit to review their school’s priorities and discuss how to fund them with their allocated budget.

Budget development is a process that starts with funding from the state of California. The January state budget determines how much money school districts will receive the following year. After that, SFUSD starts to plan how to allocate the money it will receive from state, federal, and local sources. There are many layers of budget development after SFUSD knows how much money it is expected to receive. District leadership, individual schools, and oversight bodies are all part of this work. Ultimately, the Board of Education approves and adopts the budget by July 1 of each year, after holding a first and second public reading during the month of June.

SFUSD is a single-district county, which is unusual. The County Office of Education oversees SFUSD’s budget, while also operating a set of county schools in service of San Francisco students and families.

Typically, we have four significant state-mandated budget actions each year. After the adoption of the budget by July 1 of each year, the first interim is a review of the financials as of October 31. The second interim is the second time we review as of January 31. The last one is the estimated actual along with the adoption of the budget, which must happen by July 1. 

Staff, families, and community members can give feedback on the budget at a number of levels. The annual School Planning Summit is designed to gather feedback from school staff, families, and community members for individual school budgets.

On a districtwide level, the Local Control and Accountability Plan (LCAP) Advisory Committee is composed of SFUSD staff, families, and community members. The LCAP Advisory Committee shares recommendations and feedback to SFUSD leaders and the Board of Education at the 1st Reading of the Budget and LCAP in June before final approval at the 2nd Reading Board meeting.

The Budget and LCAP webpage has SFUSD’s approved budgets as well as additional information that is available to families, staff, and the public.